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On 1 July, a number of changes will be introduced that affect building practitioners. The information below provides details and links that you may find helpful in determining their significance to you and your business.
1. Domestic Building Insurance
Registered Victorian builders seeking to purchase insurance from this government-backed insurer must select a licensed distributor to manage their DBI needs from 1 July 2017.
The Building Amendment (Enforcement and Other Measures) Act 2017 was passed on 23 May 2017 and a number of provisions will commence on 1 July, including:
• Practitioners undertaking domestic building can no longer rely on their registration in another category or class.
• Builders undertaking domestic building work on their own land need a certificate of consent unless they are registered in a category and class that authorises the planned work.
• A relevant building surveyor must not issue a permit for domestic building work unless the builder named in the permit is registered in a category and class that authorises them to do the proposed work.
Offences
• Owner-builders commit an offence if they enter into a major domestic building contract with someone who is not registered in a category or class that authorises them to do the work. An exception is created for corporations up to 1 July 2018 when the corporate registration scheme takes effect.
• Builders undertaking domestic building work are not covered by the required insurance if the builder named on the contract is not identical to the builder named on the certificate of insurance.
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Changes for Building Practitioners
Changes for Building Surveyors
In addition to the provisions that come into effect on 1 July 2017, we remind you of some of the key provisions that came into effect on 24 May 2017, including:
• Changes to corporate registration: A ‘body corporate’ or builder will be permitted to be registered as a building practitioner commenced 24 May 2017.
• New liabilities for people in partnerships: the responsibilities and liabilities of people in a partnership engaged in ‘building work’ according to the Act and the DBC Act will change in certain circumstances commenced 24 May 2017.
Two new serious offences were introduced to deter would-be law-breakers:
• People and businesses that knowingly manage, arrange or carry out building work without a permit could be prosecuted for a serious offence if they knew that a building permit was required.
• And if a person or business manages, arranges or carries out building work that they know is not in accordance with the building permit, the Act or the regulations, they could face the same consequences.
3. Consequential Regulations – commencing 1 July 2017
• Scopes of work and prescribed qualifications are defined
• The threshold amount of work that requires a builder to be registered has increased from $5,000 to $10,000
• For corporations, in certain circumstances, an exemption from the requirement to be registered when entering into a major domestic building contract with an owner-builder is introduced.
• Threshold for major domestic building contracts increased from $5,000 to $10,000 (effective 1 August 2017)
4. Building Regulations Sunset Review
The State Government has released the proposed Building Regulations 2017 for consultation. Submissions close on 18 July 2017. Let us know if you have comments to add!
To view the draft regulations, the Regulatory Impact Statement and summaries of the changes, click here.
Some of the proposed changes include:
Pools and spas
• All swimming pools and spas would be required to have a four-sided isolation barrier that complies with the most recent Australian standard (which may require owners of older pools and spas to bring them into compliance by 1 October 2020).
• The owner to maintain the pool and/or spa safety barrier (a requirement previously of the occupier), and the occupier would be required to take all reasonable steps (such as to notify the owner) to ensure the barrier was operating effectively (regs 143–144).
Three additional mandatory notification stages
• Before covering walls, floors or ceilings (to check fire resistance and the structural integrity of the framework)
• Before covering waterproofing in wet areas
• After completing storm water drainage system.
Don’t forget: re-registration commences 1 July: Registered builders are now required to re-register every five years. First re-registrations begin 1 July 2017.
